David_itl
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STN Sold To Manchester Airport Group For £1.5b

Fri Jan 18, 2013 8:55 pm

BBC story.

Years of being rivals, now STN joins the fold for £1.5billion



Quite a nice portfolio now: MAN, STN, EMA, BOH. Wonder what the FR reaction will be as I'm sure they were against it?
[Edited 2013-01-18 13:01:13]

[Edited 2013-01-18 13:13:11]
 
col
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RE: STN Sold To Manchester Airport Group For £1.5b

Fri Jan 18, 2013 9:12 pm

So the suckers at MAG paid .5BN more than the actual value? Guess MAN isn't going to see much investment going forward.
 
SInGAPORE_AIR
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RE: STN Sold To Manchester Airport Group For £1.5b

Fri Jan 18, 2013 10:05 pm

Over 16x EBITDA. That's around the same multiple that EDI was sold at.

Well done to MAG and its supportive banks who have worked hard on this.
Anyone can fly, only the best Soar.
 
flywrite
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RE: STN Sold To Manchester Airport Group For £1.5b

Fri Jan 18, 2013 10:12 pm

Good news for Stansted in my opinion, and I'm sure this will likely reignite the discussions over a second runway being built.
 
Luftymatt
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 12:51 am

Quoting david_itl (Thread starter):
Wonder what the FR reaction will be as I'm sure they were against it?

Why would FR be against it?

Quoting col (Reply 1):
So the suckers at MAG paid .5BN more than the actual value?

Is that right? Do you have a source please? If so it begs the question why they paid over the odds.
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Dano1977
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 2:22 am

Quoting LuftyMatt (Reply 4):

Contract renegotiation time.

I'm sure I read somewhere, BAA gave Ryanair a sweet deal, which may or may not be in the best interests of MAG.

Now that MAG has spent a huge chunk of change, they will want to start getting it back.

I'm assuming MAG holds all the cards, because where could Ryanair move its sizeable operation?

Luton?
Birmingham?
East Midlands?
Coventry?
Gatwick?
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Wingtips56
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 2:38 am

Don't doubt FR playing the spoiled child, picking up its toys and playing somewhere else.
Worked for WestAir, Apollo Airways, Desert Pacific, Western, AirCal and American Airlines
 
col
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 2:57 am

Quoting LuftyMatt (Reply 4):
Is that right? Do you have a source please? If so it begs the question why they paid over the odds.
http://www.telegraph.co.uk/finance/n...ks-BAAs-valuation-of-Stansted.html

There are quite a few sites giving values at 1bn. Recouping the investment at 1.5bn when your main user is RYR is not going to be an easy situation. I am sure MOL has already called MAG and told them to not even think about increasing their fees!!
 
YVRLTN
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 2:59 am

Quoting david_itl (Thread starter):
Quite a nice portfolio now: MAN, STN, EMA, BOH

So why is it OK for MAG to own a bunch of airports which now covers a huge percentage of the English catchment area, but when BAA do its anti competitive? Because one of the airports BAA own is LHR which happens to have more value than probably every other airport on the planet? No BAA supporter, just curious.

Quoting Dano1977 (Reply 5):
I'm sure I read somewhere, BAA gave Ryanair a sweet deal, which may or may not be in the best interests of MAG

Not sure MAG would want to piss off FR too much though, I mean realistically who else is going to come in and fill the void if they left? I can see the addition of a couple of airlines and routes here and there, but not a network like FR. Conversely, FR could not shift that volume of capacity anywhere either and they are not going to pull out of a market as vast as London. LTN is at capacity, SEN could not take that sort of capacity and they are not going to take on U2 at LGW and its doubtful there would be the space to do so anyway. MSE is out of the question for a large operation without major infrasturcture upgrades and is too far out to be a realistic London hub. Likewise CBG and OXF doesnt have the runway.
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RussianJet
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 4:55 am

Quoting Wingtips56 (Reply 6):
Don't doubt FR playing the spoiled child, picking up its toys and playing somewhere else

There is nowhere else. Certainly not in the UK anyway. Not for even half the planes based there. STN is a huge chunk of their business, in spite of the large number of bases they now operate across Europe.
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slinky09
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 5:33 am

Quoting YVRLTN (Reply 8):
So why is it OK for MAG to own a bunch of airports which now covers a huge percentage of the English catchment area, but when BAA do its anti competitive? Because one of the airports BAA own is LHR which happens to have more value than probably every other airport on the planet? No BAA supporter, just curious.

I quite agree and always believed the competition commission argument to be flawed and politically driven. nevertheless MAG has proven to be a competent operator, in a sort of nationalized way it'll be good for STN. I still won't ever go there though!
 
ANCsupercub
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 7:05 am

Quoting YVRLTN (Reply 8):
So why is it OK for MAG to own a bunch of airports which now covers a huge percentage of the English catchment area, but when BAA do its anti competitive? Because one of the airports BAA own is LHR which happens to have more value than probably every other airport on the planet? No BAA supporter, just curious.

I can't speak for the regulators, but in 2011 LHR, with £1,150 Million in revenue, generated 10 times the revenue of STN and 3 times the revenue of the entire Manchester Airports Group. I would assume this has something to do with it. Additionally, when you look at the numbers of passengers the airports served, LHR had far more than MAG and STN combined.

http://www.baa.com/static/BAA_Airpor...imited_Annual_Report-31Dec2011.pdf
http://www.manchesterairport.co.uk/m...nual_Report_and_Accounts_10-11.pdf
 
BlueShamu330s
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 7:35 am

Quoting david_itl (Thread starter):
Wonder what the FR reaction will be as I'm sure they were against it?

Ryanair and MAG ‘a very good marriage’

"Stansted’s biggest customer, Ryanair, would be happy to see it taken over by the Manchester Airports Group (MAG), reports the Manchester Evening News."

http://www.e-tid.com/ryanair-and-mag-a-very-good-marriage/49722/
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David_itl
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 8:34 am

FR prefers non-MAG operation to run STN


"Manchester Airport would not be a good buyer because they're just another airport-monopoly mentality," O'Leary said. "I think one of the big pension funds - Infratil or Macquarie - would be better. They'd take a longer view."
 
2008matt
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 9:19 am

Finally the BAA ruining STN saga is over, now get building that second runway and get STN busy again. Keep Ryanair as they are a big customer there but building a second runway gives huge extra capacity for new airlines too.
Keep calm and up your game!
 
willd
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 11:08 am

Quoting slinky09 (Reply 10):
Quoting YVRLTN (Reply 8):
So why is it OK for MAG to own a bunch of airports which now covers a huge percentage of the English catchment area, but when BAA do its anti competitive? Because one of the airports BAA own is LHR which happens to have more value than probably every other airport on the planet? No BAA supporter, just curious.

I quite agree and always believed the competition commission argument to be flawed and politically driven. nevertheless MAG has proven to be a competent operator, in a sort of nationalized way it'll be good for STN. I still won't ever go there though!

I see your point but this was the reason. For example say I live in say Petersfield, Hampshire. My nearest major airports are: BOH, SOU, LGW, LHR, LTN and STN. Up until a few years ago four of those were owned by BAA, BOH was small fry (and still is really only doing a couple of FR flights and the TOM charters) and LTN was painted all orange. This meant BAA pretty much had a monopoly over all the viable airports in my region. They could charge what they liked for car parking, landing fees (which impacted me through the price of my ticket) etc. In addition BAA were not going to push LGW for major international routes when they owned LHR. This was unfair because as a consumer I had no real choice.

Fast forward to now and we have a much more equal playing field. BAA still own SOU and LHR however there is more choice. MAG have BOH and STN with that Balfour Beaty lot owning LGW and LCY. Yes MAG have quite a sizeable operation but importantly they do not hold such a strong monopoly over one region as BAA did with London and the South and the Glasgow/Edinburgh corridor. LGW has managed (somehow) to attract new routes such as from VN and KE. WE have also seen more money invested into LGW which is something BAA were reluctant to do when the airport was not the jewel in their crown. THis is the exact reason why it had to happen.
 
r2rho
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 11:41 am

Quoting YVRLTN (Reply 8):
So why is it OK for MAG to own a bunch of airports which now covers a huge percentage of the English catchment area, but when BAA do its anti competitive? Because one of the airports BAA own is LHR which happens to have more value than probably every other airport on the planet? No BAA supporter, just curious.

Well, this does level the playing field a bit. Now we have BAA with LHR, GLA, ABZ, SOU. MAG with MAN, STN, EMA, BOH. GIP with LGW, EDI, LCY. The British government could have sold off BAA in three packages from the very beginning and avoid all the hassle for everyone, as it was clear that a converting a public near-monopoly into a private one was not sustainable, but oh well. (Personally I prefer a nationally-owned aiport system like AENA in Spain, but that's another story)

The important thing is that the 4/5 London airports are now under different ownership and thus have an incentive to develop and compete against each other. BAA had neglected investments in favor of LHR - the LGW passenger experience has significantly improved since GIP took over, now let's see what happens at STN. Of course, what neither BAA, GIP or MAG can do is decide to build new runways - that's up to the UK government.
 
by738
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 11:46 am

Im presuming at some point BAA will off load the rest (except LHR), Heathrow Holdings indeed....), suspect GLA may be next. Surely it could be veering towards a MAG monopoly !
 
idealstandard
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 5:10 pm

Ryanair should have bid for it.....
 
RussianJet
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 5:32 pm

Quoting idealstandard (Reply 18):
Ryanair should have bid for it.....

While I am fairly pro-FR, I can honestly say that I am glad that didn't happen.
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Luftymatt
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RE: STN Sold To Manchester Airport Group For £1.5b

Sat Jan 19, 2013 6:22 pm

Quoting col (Reply 7):
There are quite a few sites giving values at 1bn. Recouping the investment at 1.5bn when your main user is RYR is not going to be an easy situation.

Ah I see what you mean, I would question the business sense in that as well.
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